ERP for Project-Based Manufacturing: Why Questions Matter
- Terri Marello
- Sep 23
- 8 min read
A Solution Architect’s Perspective
When I walk into a new client engagement, especially one involving ERP for Project-Based Manufacturing, I rarely start by talking about software.
Instead, I start with questions. The right questions.
Because in technology projects, especially in the world of custom manufacturing, the tools only matter if they solve the right problems.
Too often, companies leap straight into solutions:
“We need a new ERP.”
“We want AI dashboards.”
“Let’s automate the shop floor.”
But technology without context is like prescribing medication without a diagnosis. You might hit the symptoms, but you won’t cure the disease.
That’s why, as a Solution Architect, my most powerful tool isn’t a server or a line of code. It’s curiosity.
What discovery / diagnostic questions should executives ask before selecting an ERP for project-based manufacturing?
Think about constructing a manufacturing plant.
You wouldn’t pour concrete before you’ve reviewed the blueprints, confirmed the soil quality, and measured where the walls will stand.
Yet in technology, companies often start “pouring the foundation” without first asking:
What are we really trying to build?
What will success look like?
How will this change help us tomorrow, not just today?
Project-based manufacturers know this lesson well. Every build is unique: a custom machine, a specialized vehicle, or a complex assembly.
The difference between profit and loss often comes down to planning.
Skip the discovery phase, and you’ll face costly change orders later.
The same applies to ERP and technology selection.
The blueprint isn’t the software, it’s the questions.
Why “features first” fails in ERP for project-based manufacturing
When executives shop for manufacturing ERP solutions, they often get dazzled by features.
A glossy demo shows a digital twin of a factory, dashboards that look like cockpit displays, or a promise that “AI will optimize everything.”
But here’s the catch: features only matter if they align with business reality.
Engineering handoff chaos: Why scheduling wasn’t the real problem
A project-based manufacturer I worked with had a scheduling nightmare. Machines sat idle, projects slipped, and customer satisfaction tanked.
On the surface, leadership thought it was a capacity issue, indicating that production needed smarter scheduling.
But once we started asking questions, a different story emerged.
Engineers were releasing incomplete BOMs, making last-minute changes, and relying on undocumented workarounds.
Production teams often discovered too late that they were missing key parts or using outdated specs.
Jobs didn’t stall because machines were overloaded; they stalled because engineering handoffs were broken.
The fix wasn’t a flashy scheduling algorithm.
It was process clarity and visibility.
By using Engineering Change Management and version-controlled BOMs in Microsoft Dynamics 365 Business Central and Project Accounting, we built a digital handoff process where every change was tracked, alerts notified downstream teams, and production only moved forward on approved versions.
The impact was immediate: handoffs that once took days now happened in hours. Production schedules stabilized, rework dropped dramatically, and interdepartmental trust began to rebuild.
How do you align ERP implementation with financial visibility (WIP, milestone billing) so that margins are real, not just on paper?
The Phantom Margin Problem: When Profits Are an Illusion
Another manufacturer proudly showed me their project reports: every job looked profitable on paper.
Yet their CFO kept waving a red flag, as cash flow was in constant crisis. Vendors weren’t getting paid on time, and leadership couldn’t understand why money kept disappearing.
When we started peeling back the layers, the problem wasn’t profitability, it was timing.
Costs were being recognized weeks or months after revenue, and subcontractor invoices were often posted long after work had been completed.
The result was a false sense of margin.
The numbers looked good in the ERP, but they didn’t reflect reality.
The solution came from rethinking how the system handled recognition.
Using Job WIP, Capacity Planning, and Resource Allocation in Microsoft Dynamics 365 Business Central, we realigned revenue and costs to production milestones.
Suddenly, leadership had a clear, real-time view of actual profitability.
The results?
Projects that once appeared “profitable” but drained cash were flagged early, allowing leadership to decline bad-fit work.
Within two reporting cycles, cash flow stabilized, and decision-making shifted from guesswork to confidence.
Check out related blogs on the topic:
Is Microsoft Dynamics 365 Business Central suitable for job costing / revenue recognition in complex project-based manufacturing (e.g. engineer-to-order)?
This is one of the most common questions I hear from executives. The short answer: yes, and here’s why.
Microsoft Dynamics 365 Business Central isn’t just accounting software, it’s a connected ERP platform that understands the complexity of project-based and engineer-to-order manufacturing.
Project Accounting and Power Apps provide the essential features required for custom manufacturing.
Features like job costing, WIP tracking, resource scheduling, engineering change management, and milestone billing are built in.
But more importantly, Business Central integrates those capabilities across finance, supply chain, and operations.
That means when engineering revises a BOM, purchasing sees it immediately.
When a project milestone is reached, revenue and costs are aligned in real time.
When production capacity shifts, scheduling reflects it instantly.
For manufacturers managing custom builds, this kind of visibility is essential. It doesn’t just keep projects on time and on budget but creates confidence across every department.
The mechanic and the machine: Diagnose before you fix
Imagine a master mechanic standing before a broken machine. He doesn’t immediately reach for the biggest wrench or the newest gadget. He listens.
He asks:
What sound does it make when it fails?
When did the problem first appear?
What’s been tried already?
Every question narrows the field; every answer sharpens the diagnosis.
Only then does he choose the right tool.
Solution Architecture works the same way.
The technology is the wrench, but the diagnosis, guided by questions, is what makes the repair effective.
What are the most common pitfalls when implementing ERP in project-based manufacturing, and how can asking the right questions up-front prevent them?
The first pitfall is assuming the technology will fix broken processes.
If engineering handoffs are chaotic or costing practices are misaligned, ERP will only digitize the chaos. Start with process clarity, not software configuration.
The second pitfall is underestimating change management.
ERP touches everyone—engineers, buyers, schedulers, project managers, and finance.
If people aren’t trained, informed, and involved early, even the best system will face resistance.
The third pitfall is focusing too much on today.
ERP needs to scale with growth, complexity, and changing customer demands.
Choosing a system that only solves immediate pain points often leads to costly rework later.
These pitfalls are avoidable when the right questions are asked upfront. It’s why I spend as much time listening as I do configuring.
What ERP features matter most for project-based manufacturing?
I am often asked questions like: “How do we ensure our ERP handles engineering changes and version control of BOMs without disrupting production schedules?”
Here’s a list of the top 5 capabilities that matter for custom manufacturing:
Accurate Job Costing and WIP Tracking – to understand profitability at every project phase.
Engineering Change Management and Version Control – so late design changes don’t derail production.
Resource and Capacity Planning – to balance people, machines, and subcontractors effectively.
Milestone Billing and Revenue Recognition – to align cash flow with actual project progress.
Integrated Financial and Operational Visibility – to keep every department working from the same source of truth.
These features are where Microsoft Dynamics 365 Business Central shines.
But more than that, they work together in a connected ecosystem, so finance, operations, engineering, and production aren’t siloed.
That’s the real difference between surviving and thriving in project-based manufacturing.
Building a culture of “why” to avoid costly mistakes
In project-based industries, mistakes are expensive.
Order the wrong raw material for a custom build, and you can’t just put it back on the shelf.
A miscalculation early on ripples downstream, inflating costs and timelines.
That’s why great manufacturers build a culture of asking “why” before committing.
Why are we ordering this material now?
Why does this spec matter?
Why do we think this process works the way it does?
Cloud ERP systems like Microsoft Dynamics 365 Business Central support this culture by giving manufacturers end-to-end visibility across engineering, production, procurement, and finance.
But the system only works if the right questions are asked first. Technology without context is just another layer of complexity.
Questions that shape ERP implementation strategy
The questions that matter most aren’t about software features. They’re about the business itself.
When I sit with a project-based manufacturer, I’m not asking, “Do you need an ERP with scheduling or advanced warehousing?”
I’m asking:
What’s the real problem?
Where does work actually stall?
What does success look like to you—not just in numbers, but in customer satisfaction and team morale?
Then we dig deeper:
What data really drives your decisions, and how reliable is it?
Where do processes break down most often—handoffs, approvals, communication?
Will the solution we design still serve you when your volume doubles, or when you take on more complex projects?
These aren’t yes-or-no questions.
They’re discovery tools that uncover root causes and long-term needs. And once those answers are clear, the right technology almost selects itself.
In many cases, the answer is Microsoft Dynamics 365 Business Central with Project Accounting because it brings together financials, supply chain, engineering change management, and project visibility into a single connected platform that scales with your business.
The compass and the map: Aligning purpose with tools
Think of questions as the compass and technology as the map.
A map without a compass is overwhelming because you don’t know which way to go.
A compass without a map is limiting since you know the direction but not the terrain.
Together, they guide the journey. The questions point north. The technology charts the path.
In project-based manufacturing, if your compass says “customer satisfaction” but your map only shows machine uptime, you’re headed the wrong way.
Aligning the compass (the why) with the map (the how) is the heart of ERP solution architecture.
Technology should serve people, not the other way around
At the end of the day, the right questions don’t just shape better technology; they serve people.
Behind every ERP implementation is a team of engineers, planners, buyers, and operators who want to do their jobs better.
If the questions we ask don’t uncover their frustrations and aspirations, the system won’t stick.
A great ERP system doesn’t just streamline processes; it reduces stress. It gives project managers confidence, engineers clarity, and executives foresight.
That’s only possible when we’ve asked enough “whys” to understand the human side of technology.
Stay curious longer
The greatest breakthroughs in ERP for custom manufacturing and technology come not from rushing to answers but from lingering in the questions.
Just as a scientist refuses to accept results without repeatable evidence, a Solution Architect must refuse to prescribe tools without diagnosing the root problem.
When we ask better questions, we don’t just pick the right technology. We design systems that endure, adapt, and truly serve the business.
Because in the end, technology is not the hero. Curiosity is.
Ready to find the right answers?
If you’re leading a project-based manufacturing company, you already know the stakes are high. Margins are tight, mistakes are costly, and customer trust is hard-earned.
The difference between “good enough” technology and the right technology starts with asking the right questions.
That’s where I come in. As a Solution Architect who has helped manufacturers align their processes with Microsoft Dynamics 365 Business Central for manufacturing, I don’t just bring technology to the table. I bring the curiosity to uncover what really matters in your business.
Let’s start with a conversation.
Ask better questions.
Get better answers.
And choose technology that helps you build smarter, faster, and stronger.
What every project manufacturer should remember
Start with questions, not software. The right ERP solution emerges when you diagnose the real business problem first.
Look beyond features. Flashy dashboards and scheduling tools won’t fix broken processes like poor engineering handoffs or misaligned costing.
Align technology with business goals. Tools like Microsoft Dynamics 365 Business Central and Project Accounting deliver real impact when tied to revenue recognition, WIP, and change management needs.
Curiosity is the differentiator. Solution Architects who linger in the “why” uncover insights that lead to technology choices that last.
About the Author
Terri Marello, President of Key Partner Solutions, is a thought leader in the Microsoft Dynamics space and the author of the LinkedIn newsletter "Why Ask Why?", where she explores the intersection of technology and business strategy.
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Key Partner Solutions is an experienced Microsoft VAR with the in-house skills to optimize your business and smoothly migrate to cloud-based Microsoft Dynamics 365 Business Central.
